With US CPI data fueling a bullish trend in the crypto market, altcoins are seeing a boost in momentum. One such coin on the rise is Avalanche (AVAX), currently priced at $39.75. Over the last 24 hours, it has experienced a volatility of just 1.0% and boasts a market cap of $16.29 billion. In the same timeframe, it has seen a significant increase of 9.73%. The daily trading volume stands at $532.58 million.
With the AVAX token surpassing the significant price point of $40, Avalanche continues to hold its position as the 11th largest cryptocurrency, boasting a market capitalization of approximately $16.36 billion. In the last seven days, this digital currency has shown impressive growth of 9.90%, hinting at potential further gains in the near future.
Avalanche Price Analysis Reveals Breakout Rally at Horizon
On a 4-hour timeframe, the price movement of AVAX suggests a downward trajectory due to the impact of a resisting trendline. Locally, the demand level is limiting the potential bullish surge.
Conversely, significant backing can be found at the $33.55 price point. This setup forms a descending triangle pattern.
At present, the Avalanche price movement within the triangle shape indicates a bullish phase since it rebounds from its support level. The upward momentum has gone beyond the 23.60% Fibonacci resistance at $38.82 and the 200 Simple Moving Average (SMA) line.
The upward trend, driven by a bullish recovery, has led to a favorable intersection of the 20 and 50 Simple Moving Average (SMA) lines. Yet, as the Relative Strength Index (RSI) line on the 4-hour chart nears the overbought threshold, the bullish energy seems to be increasing. This suggests that the uptrend could persist, possibly aiming to exceed or shatter the resistance trendline.
AVAX Price Targets $51.09
At present, the upward trend of Avalanche is encountering resistance at around $40 (a significant psychological level) and the 200 Simple Moving Average line. These points are acting as a strong barrier that’s keeping the momentum in check. If these barriers can be broken, it could lead to the release of the built-up momentum.
According to the Fibonacci sequence, it’s expected that the rally triggered by the triangle breakout will aim to surpass the 50% Fibonacci level, which is approximately $44.71. After this potential milestone, the significant resistance lies at the 78.60% level, valued around $51.09.
Network Activity Boost Hints at Impressive Growth
Looking at the current trend of Avalanche’s price, it seems to be gearing up for a breakout rally following the triangle pattern formation. The network activity is lending credence to the bullish outlook, as evidenced by a significant surge in December 2024, according to a recent post from IntoTheBlock.
This highlights a surge in spike in the active and new addresses over the Avalanche.
On-chain Data Suggest Avalanche Price Rally
As Avalanche’s network expands, on-chain analysis suggests a rising trend for this platform. Looking at the global buying and selling patterns, it appears that the AVAX price is about to break through the $40 psychological barrier.
Looking at the current data, it seems that the upward trend is getting near to the region of 2.05 million AVAX tokens, which is priced between approximately $39.96 and $40.48. At present, the neutral zone, with prices ranging from $36.25 to $39.96, contains about 22.28 million AVAX tokens.
This underscores substantial backing, boosting the likelihood of a favorable trend. The upcoming resistance area, trading between $40 and $52, encompasses approximately 35.63 million AVAX coins.
or simply:
A robust endorsement makes it more probable for an advantageous movement. The next potential supply zone, spanning from $40 to $52, contains around 35.63 million AVAX tokens.
Consequently, the on-chain indicator suggests that the Avalanche price might reach the psychologically significant level of $50 as long as the upward trend persists.
Conclusion
As network action increases and positive sentiment grows, it seems likely that Avalanche may surge past the $40 barrier. Should a breakout from the triangle shape occur, AVAX might aim for the potential resistance at the Fibonacci levels of approximately $44.71 and $51.09.
As an analyst, I would advise keeping a close eye on potential resistance levels. These can be found near the current trendline and around the psychologically significant price point of $40. Confirmation of continued growth may require overcoming these hurdles.
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2025-01-16 19:08